Research from the USA shows that young people who begin their labor market careers with long periods of unemployment get permanent "scars": incomes throughout life are significantly lower. The value of getting unemployed young people into work can therefore extend throughout working life. Therefore, efforts against rising youth unemployment are urgent.

The basic problem with reduced employer contributions in order to increase youth employment is that they apply to all young people who work. This subsidizes many jobs that would still exist. That is why the measure becomes so expensive. A cheaper and better method is enhanced employment support that only subsidizes new employment.

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